In order to further understand the economic system of the Great Song Dynasty, the old man specially called Cai Jing to explain the economic knowledge to me, after all, Cai Taishi has been in charge of the economy of the Great Song Dynasty for decades, and he has also implemented a lot of economic policies during this period, and he is still very clear about the ins and outs of many economic systems. Cai Jing began to teach me economic experience in the Vertical Arch Palace, starting with the trade market:

Prince Qiyu, it turned out that our dynasty set up a city in Beijing, and set up a city in the border and big cities (a total of 21). Mainly foreign merchants will sell the goods to the city as they wish, and the pedestrians and tooth people will negotiate the price fairly, and the market will not need it for the time being, and it will be sold when the time comes, and the merchants are willing to exchange with other goods in the city, and they will also be satisfied as much as possible. Pedestrians who participate in the city's e-commerce work can mortgage real estate or gold and silver, and more than five people will guarantee each other's purchases of goods from the city's e-commerce, and sell them in the market with profits as appropriate, and the payment will be repaid within six months to one year, with an annual interest of 20 percent, and a fine will be imposed if it is not returned after expiration.

This operation is equivalent to the current futures market, which has begun to take shape in the Great Song Dynasty, and I have to admire the wisdom of the ancestors. The advantage of this will not only stabilize the effect of price adjustment between supply and demand, but also restrain the monopoly of profiteers and the profits that were previously attributed to big businessmen to the official ownership, and increase fiscal revenue. In addition, important materials can be used as strategic reserves of the imperial court to prevent the opening of warehouses and release in disaster years or when the market is in short supply. It also provides convenience for foreign businessmen and cargo owners from afar, and sells the goods in their hands in a timely manner, if it is a non-strategic substance, it can be sold in the form of a discussion (state-owned store) through the huge sales network of Beijing.

Then there is Cai Jing's introduction to coins, Prince Qiqi, because of my dynasty so far, the market circulation of coins is more, the first thing to say is iron money, since the Han Dynasty five baht, iron money has been used to this day, coupled with the development of the mining industry has led to a further surge in the number of iron money, the current market is generally small transactions are with iron money, including small iron money, big iron money, etc., large transactions are with copper money, iron money is heavy, low value. It is not easy to circulate and carry, especially causing great difficulties for bulk trade. Therefore, with the trading of gold and silver, coupled with the circulation of paper money "jiaozi", there are gold and silver shops and exchange houses in large cities, specializing in buying and selling gold and silver and exchanging currency.

Due to the vast territory of our dynasty, the situation of each road is not the same, so there are certain differences in the coins used by each road, such as Sichuan copper less iron more, iron money has always been minted quite a lot, and Shaanxi and other places copper and iron money are used together, due to the different processes and regulations of each road, the copper and iron ratio of its coins is also different, resulting in the chaos of the current coin market. It is very detrimental to commercial activities and circulation. Therefore, on the basis of absorbing the experience of Sichuan folk banknote Jiaozi, this dynasty officially issued the Great Song Dynasty banknote Jiaozi, which is also thanks to the improvement of printing technology. In addition, banknotes are easy to carry, very suitable for circulation and trade, so once launched and have been widely praised by the market, and the early stage of the issuance of the imperial court is for the issuance of Jiaozi face value reserves of 20% of the precious metal reserves, but later due to the imperial court used to expand the extent, resulting in the issuance of banknotes precious metal reserve rate dropped to 10%, and finally to 5%, and even no precious metal reserves at all, directly according to the financial needs of the imperial court to use how much banknotes are printed, which caused serious inflation, As a result, the banknote restructuring ended in failure.

Jiaozi is the earliest paper money in China and the earliest in the world when the Great Song Dynasty was born. The origin of China's paper money is very early, the white deer skin coin of the era of Emperor Wu of the Han Dynasty (reigned 140 ~ 87 years ago) can be said to be the abuse of China's paper money, but it is only used as a tribute between princes and princes, and the flying money of the Tang Dynasty is the prototype of China's paper money, but it is only used for exchange in other places. The Jiaozi of the Great Song Dynasty is the beginning of China's real paper money. It is no accident that Jiaozi was born in the Great Song Dynasty, it is a product of the development of the commodity economy and the monetary economy of the Song Dynasty. The economic trade of the Song Dynasty developed more than that of the Tang Dynasty, and the economic center of gravity began to shift to the south. The development of commercial cities in the Song Dynasty was very different from that of the Tang Dynasty. Chang'an City in the Tang Dynasty had special commercial districts, the East Market and the West Market, and city transactions were carried out according to the designated place and time, that is, every morning and evening to listen to the sound of drums to enter and exit the market. In the Song Dynasty, the market transactions in the cities broke the restrictions of place and time, the market was bought and sold day and night, and the transactions were not limited to the urban area, and a lot of grass markets arose in the countryside, namely bazaars and town markets, and Jingdezhen, the center of porcelain, was built in the Great Song Dynasty.

Foreign trade is also becoming more important, Guangzhou, Hangzhou, Mingzhou, Quanzhou and other are important foreign trade cities, the government has a city department to collect taxes, local states, prefectures, counties, and even county towns, cities, customs, villages, ferries, etc., also have commercial tax or tax fields. The development of commodity economy and monetary economy requires more light and easy-to-carry currencies with large denominations, which is the main reason why paper money Jiaozi was produced in the Great Song Dynasty. Jiaozi circulated as a credit currency, and it was also a product of the development of commercial credit relations since the Tang and Song dynasties. After the two Song and Tang dynasties, the credit relationship has been further developed. There is a kind of "credit" relationship between the merchants and the merchants in the Great Song Dynasty quite extensively. Su Shi said: Merchants sell, for example, there is no cash, if you use cash, there is no interest, you must ask for what you sold last year this year, and ask for credit this year next year, and then calculate it and help each other.

During the period of the Five Dynasties and Ten Kingdoms, Sichuan circulated iron money, and the Song Dynasty inherited the negative legacy of currency circulation since the Five Dynasties. Sichuan passes iron money, and the iron money is too heavy, 25 pounds of iron money per thousand dollars, 13 pounds of China Railway, and it is inconvenient for business travelers to carry. As a result, paper money first appeared in the Sichuan people. During the period of Zhenzong Dazhong Xiangfu (1008~1016), private merchants in Shu made a kind of paper coupon called "Jiaozi", which circulated on behalf of iron money. Subsequently, it was co-hosted by 16 wealthy households, with a collection of 360,000 yuan (1,000 yuan for a yuan) as the capital, with one hand as a yuan, and three years as a boundary (period), and new coupons were issued at the end of the circle, and the coupons could be exchanged for cash at any time. However, since then, the wealthy industry's industry has gradually declined, their credit has been shaken, and they are unable to exchange the issued paper coupons, and lawsuits have repeatedly arisen. At the end of Dazhong Xiangfu, Xue Tian and Zhang Ruogu, the Sichuan transfer envoys, requested the establishment of Yizhou "Jiaozi Affairs", and the official family issued "Guanjiaozi".

In general, money is the basis for the prosperity of the trade market, and a stable and unified currency is the premise, small market transactions with iron money, copper money, medium transactions with paper money, and bulk commodity transactions with gold, silver or other financial instruments and instruments, so as to build a complete market trading system. The key is that the issuance of paper money needs to ensure sufficient precious metal reserves, otherwise the random issuance of paper money is easy to cause inflation, leading to the collapse of paper money credit and collapse, the other is to increase the exploration of precious metals, the use of the developed metallurgical process of the Great Song Dynasty to refine precious metals, and finally to increase foreign trade, the use of the Song Dynasty's export of rich commodity advantages, the foreign precious metals will be drained into our territory.

This gave me a new inspiration, the new dynasty can be issued again after the banknote, called the Song currency, issued by the official, promoted to the national circulation, with 20% of the precious metal as a reserve mechanism, because the banknote circulation for a period of time, will inevitably be damaged fabric problem, and the damaged exchange can be exchanged in real time through the resistance throughout the country. Thinking of me, he smiled, it seemed that he still had to learn, so he smiled and said to Cai Jing: Master Cai, the problem of paper money is already roughly clear about the cause and effect, please continue.

Cai Jing continued: At present, the foreign trade and official taxes of our dynasty are all levied on silver, and the distribution of official salaries is also in silver taels, and the current annual tax and foreign trade collection of the imperial court is about 20 million taels of silver; The second is the discussion, the imperial court will implement a monopoly on salt, tea, wine, iron, alum, etc., that is, the imperial court will control the production of these items and monopolize the sale, such as alcohol, prohibit private brewing, and official monopoly. The main store has the right to brew the koji, but the foot shop does not have this right, so you have to go to the official to buy koji and brew it yourself. Monopoly of liquor, monopoly of koji and tax liquor. Sanjing area (Kaifeng, Luoyang, Shangqiu) implements the monopoly of koji; In the state city, the monopoly of liquor is implemented; Localities below the county level either pay taxes or monopolize the sale of alcohol. The same is true of most of the goods, including those of the Gentiles, which are sold throughout the country on a negotiable basis. The annual tax revenue of the imperial court is about 25 million yuan; The third is commercial taxation, and the imperial court has set up field, affairs and other institutions throughout the country to collect taxes. There are two kinds of commercial taxes: passing taxes, each level is worth two out of 100, which is drawn to merchants; The living tax, which is worth three out of 100 draws, is drawn for sitting on Jia. In addition to regular taxes, there are also miscellaneous taxes. With the prosperity of commerce, commercial tax has increasingly become one of the important sources of government revenue. At present, the annual tax revenue brought to the imperial court is about 35 million yuan; Then there is the agricultural tax, that is, the land tax, which is divided into summer tax and autumn tax according to the time of payment, the summer tax mainly includes silk, cotton, silk fabrics, wheat, coins, etc., and the autumn tax is levied on rice, millet, beans, grass, etc. The average tax per mu is one bucket (12 catties), as the general law of the world. In addition, the government increases taxes along the way, transfers, conversions, foot money (transportation costs), additional consumption (tax increases in the name of tax loss), advance borrowing, heavy urging (overlapping tax collection after paying taxes), Yicang, Dadou, Da Hu, Dou Mian, Hu Mian (when paying taxes, the tax grain is higher than the top part of the pile of Dou Mian Hu Mian), and the sample (the tax increase in the name of the official inspecting the tax samples), etc., these are the types of tax items in the year of great disasters or wars, and the annual tax brought to the imperial court is about 37.5 million yuan; There is also the exemption from servitude: the people pay money and do not have to pay the tax for servitude. The annual tax revenue brought to the imperial court was about 26.8 million yuan; Then there is the money of the workshop, that is, the tax income of the workshop and the river crossing, which is about 13.6 million yuan a year. To sum up, the imperial court collects about 157.9 million yuan in taxes a year. Eighty percent of them are for the upper supply, that is, they need to be put into the treasury of the Beijing Division, and 20 percent of them are used for local funds when they stay in the state and send envoys.